Report: Consumption loan portfolio increased by 15% to Rs.90 lakh crore

The country's consumption loan portfolio has grown by 15.2% year-on-year to Rs 90.3 lakh crore by March 2024. According to the latest credit bureau report, the growth has however decelerated to 17.4% in March 2023. This is due to a decline in the home loan segment, which accounts for 40.1% of the overall consumer loan portfolio. Home loan portfolio growth slowed to 7.9% in FY2024, down from 23% yoy during FY23. This is due to deceleration in origination growth, which fell to 9.2% in FY24, as against 18.2% during the previous fiscal. Origination is the process where a bank initiates the process for a new loan or credit, including the evaluation, processing and approval of an applicant's application. According to the report, the trend of taking loans above Rs.35 lakh has increased. However, the average ticket size increased by 32% from Rs.20.1 lakh in FY20 to Rs.26.5 lakh during FY24. In contrast, strong momentum is seen in the personal loan segment, which has seen a jump of 26% during FY 2024 despite several regulatory reforms. Ticket loans of Rs 10 lakh or above have increased in origination in terms of value, while loans below Rs 1 lakh have dominated the volume. 34% growth in consumer durables loans Consumer durables loans are expected to grow by 34% year-on-year during FY 2024. Which was a growth of 26% during the same period last year. Auto loans also grew at a rate of 20%, registering a growth of 22% during FY2023. The MSME portfolio grew by 29% YoY in FY24 as against 15% during FY23.

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